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[AMERIANA BANCORP LETTERHEAD]
AMERIANA BANCORP REPORTS SECOND QUARTER, FIRST HALF RESULTS
NEW CASTLE, Ind.--July 26, 2005--Ameriana Bancorp (NASDAQ/NM: ASBI) today
announced results for the second quarter and six months ended June 30, 2005.
Net income for the second quarter totaled $730,000 or $0.23 per diluted
share compared with net income of $435,000 or $0.14 per diluted share reported
in the same period last year. Net income for the second quarter of 2005
included, as previously announced, a payment totaling $1,100,000 received in a
settlement arising from the Commercial Money Center, Inc. ("CMC") bankruptcy
proceedings relating to certain lease pools reserved and written off in prior
periods. Net income for the first half of 2005 totaled $1,490,000 or $0.47 per
diluted share compared with net income of $906,000 or $0.29 per diluted share in
the year-earlier period. Net income for the first six months of 2005 reflected
total recoveries in the CMC matter of $3,400,000, including a payment of
$2,300,000 received during the first quarter in settlement of certain litigation
against one of the sureties for the lease pools. The amounts received were
recorded as recoveries to the allowance for loan losses resulting in adjustments
of $982,000 and $3,032,000, respectively, for the three and six months ended
June 30, 2005, compared with provisions for loan losses of $50,000 and $200,000,
respectively, for the three and six months ended June 30, 2004. The Company also
made a voluntary payment of $1,100,000 toward its pension liability during the
first quarter of 2005.
Net interest income for the quarter was $2,477,000 compared with
$2,567,000 in the year-earlier period. Net interest income for the first half of
2005 was $4,903,000 versus $5,528,000 in the comparable period last year.
Non-accrual loans increased $1,314,000 or 23% to $7,050,000 at June 30,
2005, compared with $5,736,000 at December 31, 2004. The increase was primarily
due to one commercial real estate loan that was reclassified as a non-accrual
loan.
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Commenting on the results, Jerome J. Gassen, President and Chief
Executive Officer, said, "Obviously, we are very pleased with the success of our
efforts to make recoveries against prior losses in the CMC matter.
Operationally, however, we continue to face challenging market conditions,
including a flat yield curve and a highly competitive environment for deposits,
both of which are placing increasing pressure on our net interest margin. Also,
with higher interest rates for home mortgages and home equity lines of credit,
demand for these products remains well below the levels seen last year, which
has in turn affected the amount of gains on sales of loans we generate. Added to
these negative market forces, during the second quarter we also incurred higher
operating expenses, the most significant of which included professional
consulting fees and increased claims-based costs under our health care plan, but
we are optimistic that these latter expenses will not recur to the same extent
in the second half of 2005. We continue to work diligently to enhance the
efficiency of our operations and are taking additional steps to improve our
margin and build loan growth."
Ameriana Bancorp is a bank holding company. Through its wholly owned
subsidiary, Ameriana Bank and Trust SB, the Company offers an extensive line of
banking services and provides a range of investments and securities products
through branches in the central Indiana area. As its name implies, Ameriana Bank
and Trust SB also offers trust and investment management services. The Bank has
interests in Family Financial Holdings, Inc. and Indiana Title Insurance
Company, and owns Ameriana Insurance Agency, a full-service insurance agency.
This news release contains forward-looking statements within the
meaning of the federal securities laws. Statements in this release that are not
strictly historical are forward-looking and are based upon current expectations
that may differ materially from actual results. These forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from those anticipated by the statements made herein. These risks and
uncertainties involve general economic trends, changes in interest rates, loss
of deposits and loan demand to other financial institutions, substantial changes
in financial markets; changes in real estate value and the real estate market,
regulatory changes, possibility of unforeseen events affecting the industry
generally, the uncertainties associated with newly developed or acquired
operations, the outcome of pending litigation, and market disruptions and other
effects of terrorist activities. The Company undertakes no obligation to update
these forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unforeseen events, except as
required under the rules and regulations of the Securities and Exchange
Commission.
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AMERIANA BANCORP
UNAUDITED FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
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2005 2004 2005 2004
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Interest income $ 4,837 $ 4,369 $ 9,494 $ 9,074
Interest expense 2,360 1,802 4,591 3,546
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Net interest income 2,477 2,567 4,903 5,528
Provision (adjustment) for loan losses (982) 50 (3,032) 200
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Net interest income after provision for loan losses 3,459 2,517 7,935 5,328
Other income 958 1,044 2,116 2,022
Other expense 3,537 3,217 8,238 6,568
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Income before income taxes 880 344 1,813 782
Income tax expense (benefit) 150 (91) 323 (124)
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Net income $ 730 $ 435 $ 1,490 $ 906
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Earnings per basic and diluted share $ 0.23 $ 0.14 $ 0.47 $ 0.29
========= ======== ======== ========
Weighted average shares outstanding:
Basic 3,155 3,149 3,154 3,149
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Diluted 3,168 3,172 3,169 3,171
========= ======== ======== ========
Dividends declared per share $ 0.16 $ 0.16 $ 0.32 $ 0.32
========= ======== ======== ========
JUNE 30 DEC. 31 JUNE 30
2005 2004 2004
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Total assets $428,705 $428,553 $428,538
Cash and cash equivalents 9,499 17,053 24,320
Investment securities held to maturity 166,836 158,322 154,681
Investment securities available for sale 12,206 12,032 11,797
Loans, net 195,113 196,344 191,459
Deposits 335,869 344,047 347,273
Borrowed funds 47,387 40,390 35,176
Shareholders' equity 38,969 38,643 39,145
Loans accounted for on a non-accrual basis 7,050 5,736 5,560
Book value per share 12.35 12.26 12.43
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Contact:
Ameriana Bancorp
Jerome J. Gassen, 765-529-2230